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Data for Hermann Corporation are shown below:

Per Unit Percent of Sales Selling price $ 50 100% Variable expenses 28 56 Contribution margin $ 22 44%

Fixed expenses are $70,000 per month and the company is selling 4,000 units per month.

Required:

1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $11,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $5,000?

1-b. Should the advertising budget be increased?

Req 1A ' Req lB ' How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $11,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $5,000? (Do not round intermediate calculations.) Req1B )